Renewable energy upgrades are among the best investments nonprofit organizations can make, and — thanks to the Inflation Reduction Act — more affordable than ever.
In a recent post in Utility Dive, Brian Martucci explores the recent announcement by the U.S. Treasury Department that certain types of nonprofits — including 501(c)(3)s — are now able to begin accessing federal tax credits for their renewable energy investments using the Internal Revenue Service’s direct pay framework.
According to the White House website, here’s how to access the credits:
- Identify the project and the credit you want to pursue.
- Complete your project, place it into service, and determine the corresponding tax year.
- Determine when your tax return will be due.
- Complete pre-filing registration with the IRS before your tax return is due.
- Once you receive a valid registration number, file your tax return by the due date, including extensions.
- Receive your direct payment.
When you run a nonprofit, your investments have to measurably benefit your organization and your mission. By investing in renewable energy, you can reduce your organization’s overall energy costs while demonstrating a commitment to a sustainable future at the same time — a win-win!
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